PENN Entertainment shareholders revolt over CEO pay package
More than a third of stockholders push back against Jay Snowden and CFO Felicia Hendrix’s 2023 pay packets at company AGM
More than a third of PENN Entertainment shareholders have revolted against CEO Jay Snowden’s $15.5m remuneration package for 2023 in another blow against the exec.
According to the company’s most recent SEC filing, 34.3% of eligible shareholders voted against Snowden and CFO Felicia Hendrix’s total pay packets for last year.
Snowden’s total remuneration of $15.5m saw his $1.8m base salary significantly topped up by stock awards and incentive plan compensation.
Hendrix’s base salary rose from $712,500 in 2022 to $844,808 last year, with that figure rising to $4m when adding in stock options and other compensation.
At the group’s AGM, held on 4 June, out of a total of 129,215,217 shares being represented at the meeting, more than 44 million votes were cast against the pay packets.
The board of directors had previously unanimously recommended that shareholders back the compensation.
Additionally, while 34.3% of shareholders went against the grain, the affirmative vote of a majority of votes cast was required for the proposal.
During the same AGM, PENN Entertainment chair David Handler saw 27% of shareholders push back against his re-election to the board.
The same percentage also voted against Vimla Black-Gupta’s re-election while 16% moved to block Anuj Dhanda’s return to the board.
Once again, the board had unanimously recommended to shareholders the re-election of Handler, Black-Gupta and Dhanda.
The trio were all re-elected as Class I directors despite the sizable no vote, and will remain on the board alongside Snowden, Barbara Shattuck Kohn, Marla Kaplowitz, Jane Scaccetti, Ronald Naples and Saul Reibstein until 2027.
The rebellious faction within PENN comes after activist shareholder, The Donerail Group, penned an open letter at the end of May slamming the company’s business approach.
The six-page letter, signed by Donerail Group managing partner Will Wyatt, called for a sale of PENN’s land-based operations while slamming Snowden’s tenure as CEO.
The investor also took aim at the firm’s online strategy, including hitting out at selling Barstool Sports back to its founder for $1 and failing to carve out significant market share with ESPN Bet.